Friday, February 11, 2011

OSK Research advocates investors buy into weakness after sharp fall of KLCI

KUALA LUMPUR: OSK Research said with Thursday, Feb 10's drop wiping out the FBM KLCI's year-to-date gains, by applying a 1 std deviation below mean for the KLCI PER would give it'' a KLCI level of 1,378 although it feels this would be unjustified given the still strong GDP growth projected for 2011.

'Thus we maintain our KLCI fair value of 1,648 based on a PER of 16x and advocate Buying into Weakness given the almost equal upside and downside potential,' it said on Friday, Feb 11.

Its recommended sectors are for Banks with the CONSTRUCTION [], Oil & Gas and Property sectors remaining good trades.


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